CORPORATE PROFITS – AUSTRALIA

Oil Search says gas output will double in PNG

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Original article by Perry Williams
The Australian – Page: 22 : 20-Feb-19

Oil Search has posted a 2018 net profit of $US341.2m, which is 13 per cent higher than previously, with revenue up six per cent to $US1.535bn. A sharp rise in the price of LNG and crude oil during the year helped offset a decline in full-year production due to an earthquake in Papua New Guinea early in the year. Oil Search still aims to double LNG production in PNG by 2024. Shareholders will receive a final dividend of $US0.085 per share, and a full-year payout of $US0.105 a share.

CORPORATES
OIL SEARCH LIMITED – ASX OSH, EXXONMOBIL CORPORATION, TOTAL SA, RBC CAPITAL MARKETS

Seven slashes debt, looks to banks’ ad spend

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Original article by Max Mason
The Australian Financial Review – Page: 23 : 20-Feb-19

Seven West Media has posted a 2018-19 interim underlying net profit of $91.8m, which is 7.8 per cent lower than previously. Revenue was 1.5 per cent lower at $797.4m. Seven has scaled back its full-year EBIT growth forecast to no more than five per cent at best. CEO Tim Worner says Seven was affected by the weaker advertising market, but he expects banks and insurers to increase their advertising expenditure in the wake of the Hayne royal commission. He adds that free-to-air TV is a compelling proposition for banks as they seek to rebuild trust in their brands.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, CCZ EQUITIES PTY LTD, AIRTASKER PTY LTD, HEALTHENGINE PTY LTD, SOCIETYONE AUSTRALIA PTY LTD

BHP resists ramp-up as prices surge

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Original article by Paul Garvey
The Australian – Page: 19 & 22 : 20-Feb-19

BHP has posted an underlying profit of $US3.8bn ($5.3bn) for the first half of 2018-19, which is slightly below the consensus forecast of analysts. Underlying EBITDA also fell slightly short of expectations at $US10.5bn. Meanwhile, CEO Andrew Mackenzie says BHP will not increase its iron ore output despite a rally in the price of the steel input in the wake of the tailings dam disaster in Brazil in January. Shareholders will receive a higher-than-expected interim dividend of $US0.55 per share.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, RBC CAPITAL MARKETS

Westpac cops flak after flat quarterly post

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Original article by James Frost
The Australian Financial Review – Page: 15 & 18 : 19-Feb-19

Westpac has reported a statutory net profit of $1.95bn and a cash profit of $2.04bn for the December 2018 quarter. Both figures were largely unchanged from the two previous quarters. Westpac has also advised that its net interest margin rose during the quarter, while there was an increase in both secured and unsecured mortgage delinquencies. Meanwhile, the Australian Securities & Investments Commission will appeal a Federal Court ruling that a marketing campaign by Westpac’s BT arm between 2014 and 2016 did not breach its financial services licence.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, BT FINANCIAL GROUP PTY LTD, FEDERAL COURT OF AUSTRALIA, CITIGROUP PTY LTD, UBS HOLDINGS PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Earnings hit tipped for BHP

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Original article by Paul Garvey
The Australian – Page: 20 : 19-Feb-19

BHP will post a net profit of $US3.9bn for the first half of 2018-19, according to the consensus forecast of analysts. This compares with $US4.1bn for the previous corresponding period. EBITDA is tipped to fall from $US12.8bn to $US10.6bn, although an expected strong rise in the petroleum division’s EBITDA will help offset the underperformance elsewhere in BHP’s portfolio. Meanwhile, BHP’s interim dividend is expected to fall from $US0.55 per share to $US0.53, although the downturn in the Australian dollar will boost the dividend payout of local investors.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA

Bigger isn’t better says CEO as Newcrest doubles its profit

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Original article by Paul Garvey
The Australian – Page: 20 : 15-Feb-19

Newcrest Mining has posted a 2018-19 interim net profit of $US237m ($334m), compared with $US98m previously. CEO Sandeep Biswas says the gold miner is well-placed to capitalise on any acquisition opportunities, but stresses that a deal would have to add value for shareholders. Biswas adds that mining companies should not pursue mergers and acquisitions simply to become larger unless the deal will add value. Newcrest shareholders will receive an interim dividend of $US0.075 per share.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, NEWMONT MINING CORPORATION, GOLDCORP INCORPORATED, BARRICK GOLD CORPORATION, RANDGOLD RESOURCES LIMITED, LUNDIN MINING CORPORATION, SOLGOLD PLC

HT&E tunes in to potential deals after strengthening balance sheet

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Original article by Max Mason
The Australian Financial Review – Page: 19 : 14-Feb-19

Radio broadcaster HT&E has posted a net profit of $36.7m for calendar 2018, which is 23 per cent higher than previously. Revenue was five per cent higher at $271.8m and EBITDA rose seven per cent to $71.8m. The company’s Australian Radio Network division has posted revenue of $235.5m and EBITDA of $84.6m for the year. CEO Ciaran Davis says HT&E is open to acquisitions, but he says there are no "definitive opportunities" at present.

CORPORATES
HT&E LIMITED – ASX HT1, AUSTRALIAN RADIO NETWORK PTY LTD, ADSHEL PTY LTD, NZME LIMITED – ASX NZM, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, ALLAN GRAY AUSTRALIA PTY LTD

Beach lifts profit guidance as more growth tipped

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 18 : 14-Feb-19

Beach Energy has posted a 2081-19 interim net profit of $282.9m and underlying earnings of $278.8m. Sales rose by 169 per cent to $1.057bn, and Beach has upgraded its full-year EBITDA forecast in response to its strong performance in the first half. CEO Matt Kay says the oil and gas group will consider acquisitions, but he stresses that any deals would need to add value for shareholders. Shares in Beach closed 5.3 per cent higher at $1.78 on 13 February.

CORPORATES
BEACH ENERGY LIMITED – ASX BPT, LATTICE ENERGY LIMITED, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, BP PLC, CUE ENERGY RESOURCES NL – ASX CUE, JP MORGAN AUSTRALIA LIMITED, CITIGROUP PTY LTD

Rising gold price makes Evolution think twice about acquisitions

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Original article by Brad Thompson
The Australian Financial Review – Page: 18 : 14-Feb-19

Evolution Mining has reported a 2018-19 interim net profit of $92m, down from $122.5m previously. Executive chairman Jake Klein anticipates further consolidation in the gold sector and he says the mid-tier miner is open to acquisitions. However, he stresses that Evolution will only consider assets that enhance the company’s portfolio and add value for shareholders. Meanwhile, Northern Star Resources has posted an interim net profit of $82m and revenue of $633.5m.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN, NORTHERN STAR RESOURCES LIMITED – ASX NST, BARRICK GOLD CORPORATION, RANDGOLD RESOURCES LIMITED, RBC CAPITAL MARKETS

Macquarie chief backs loan brokers

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Original article by Joyce Moullakis
The Australian – Page: 19 & 23 : 13-Feb-19

Macquarie Group has affirmed that it expects profit growth of around 15 per cent for fiscal 2019, which suggests a full-year profit of at least $3bn. Meanwhile, Macquarie has more than $24bn worth of capital reserves at present, but CEO Shemara Wikramanayake has stressed the need for discipline with regard to risk management in the current environment. She has also expressed support for the mortgage broking industry in the wake of the financial services royal commission.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, CADENCE CAPITAL LIMITED – ASX CDT, JP MORGAN AUSTRALIA LIMITED, QUADRANT ENERGY PTY LTD, PROPERTY EXCHANGE AUSTRALIA, AUSTRALIAN LABOR PARTY